Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): 1. $ 8,750 per year at the end of each of the next seven years 2. $ 50,050 (lump sum) now 3. $ 100,250 (lump sum) seven years from now

Requirement1. Calculate the present value of each scenario using a 6% discount rate. Which scenario yields the highest present value? Round to nearest whole dollar. 2. Would your preference change if you used a 12% discount rate?